Friday July 19

It’s the last day of the trading week, lets talk about…

 

 

Well, I woke up Thursday morning and saw Gold selling down sharply, and I also knew that I would be away for the whole day helping out on a project, and likely unable to check the markets.  I tweaked the report in a couple of places and had to leave, and I thought to myself,  “Well, I hope that JNUG doesn’t have one of those 20&% down days today.”  🙁

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The opening THEME pic was really  a beautiful thing to see when I got a chance to log on right after noon Eastern time ( lunch).    Let’s talk about  Precious Metals before the final trading day of the week.

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USD –  Topping? It was rejected at the upper trend line again.

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We came very close to taking out the JULY ICL, but we did not.  I kind of wish we did to just get that behind us.  We do NOT have to take those lows out, but it seems so easy from here.  We need quick upside action, or we could still dip down & run those July stops.

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GOLD #1 – Do you remember that wedge?  Well those lows were taken out in pre-market, and…

 

 

GOLD #2– It actually dropped sharply and made it back inside? That is pretty wild. So we have another reversal at the lows…

 

 

GOLD #3 – When I see a reversal like this, my mind is thinking that buyers are evident.   The lows were rejected. Buying came in with the last 2 days selling, so even if we do run the JULY stops, we’d probably get more buyers and a reversal again.  Let’s look closer…

 

GOLD #4 – I’d consider this good divergence because the price isn’t ‘just below the prior lows of early July’, it is quite a bit below the July 2 lows.

 

SILVER  – Silver had a stop run & reversal. Can we get some follow through buying upside?

I have shown pictures of a Gravestone Doji in the past.   They are upside down  hammers, and they come from an intraday  run higher and then it all sells back off into the close.  People view this as Bearish, and they say, ”  It gave up all the gains. It couldn’t hold on. It is weak.”  This is not true in many cases, and they can be a bottoming candle  after a sell off.

GDX–  GDX has a form of Gravestone Doji and if Golds reversal turns into a low, the Miners likely have their lows too.

So we have been discussing Miners acting Bullishly in all of this GOLD selling.   Let’s look at a few Miners.  For starters, we had Bullish Engulfing Candles in GG and NEM.  Those lows usually are not broken right away.  Were they violated during GOLDS drop Thursday?

 

 

NEM –  NEMs Bullish Engulfing lows of Tuesday were not violated with Wednesday or Thursdays Gold sell off.

GG –  GG did not break its bullish engulfing lows with Golds sell off  either.

KL –  KL sold off on Wednesday and then gapped down Thursday, yet buyers  stepped in & it tried to regain price on the day when Gold broke to new lows.

 

SSRM  –  SSRM is not breaking down with Silver

 

DRD  –  DRD broke above the 10sma & the indicators are crossing the zero line.

 So again, Yes, GOLD is selling off into new lows again and again.  While we have been waiting for GOLD & SILVER to finish off their big league sell off,  we also have been witnessing Miners being accumulated and purchased while the Metals sell off.   I find this very encouraging, because we all have seen Miners drop 7% day after day after day when Gold sells down.

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 What we are seeing during this major sell off looks very bullish for this sector.  If Miners are holding on, or even climbing during this sell off,  they must be being accumulated. What will they do when the ICL is in place, and Gold & Silver rip higher?   So big Money may run the lows of  the JULY ICL, but when the selling is done, this may be a V-Bottom that just rips higher and takes miners with it.   I know that this is dragging on and on, and seems endless, but we are closer to a multi-week rally that you do NOT want to miss with each passing day.

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 Let’s see what Friday brings our way, and then we’ll have that Big Picture report this weekend.

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~ALEX

 

SIDENOTE:  Those blockchain trades, like MGTI, SRAX, MARA, SSC, DPW, RIOT, etc.

 

MGTI – After a burst higher, MGTI, RIOT and a few others look to be bull flagging. These look like good set ups

 

 

SSC- I mentioned that I bought this one in a ‘pinch’ the other day, and it did not Break higher yet, but the RSI was bullish & it was above the 10sma.

SSC–  It Broke out Thursday, and if I was home, I would have added to my position.   I may try to add in the future.